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The 10 Golden Rules of Effective

Management
1. Be consistent.

This is the first rule because it applies to most of the others. Before your
management approach can be effective, it must be consistent. You must reward
the same behaviors every time they appear, discourage the same behaviors when
they appear and treat every member of your team with an equal, level-headed
view.

2. Focus on clarity, accuracy and thoroughness in communication.

How you communicate to your team can dictate your eventual success. When
relaying instructions, recapping meetings or just doling out company updates,
strive for the clarity, accuracy and thoroughness of your communication. This
goes for any other medium, whether that means in-person communication,
email or a phone call. Clarity, accuracy and thoroughness are the best way to
avoid miscommunication and keep your team on the same page.

3. Set the goal of working as a team.

If you want your team members to work together, have them work for
something together. Setting goals just for the department or one individual
breeds a limited mentality and forces team members to remain isolated. Instead,
give staffers a unified focus and purpose, to inspire them together.

4. Publicly reward and recognize hard work.

When a member of your team does something exceptional, reward him/her --


with a bonus, a small trophy or even just a vocal recognition. Do this in front of
the group; it will make the intended recipient feel good and show the rest of the
team that hard work is rewarded. The only caveat goes back to rule one: Be
consistent in your rewards so you won't be seen as playing favorites.
5. Be the example.

As the manager and leader, you should set an example in terms of your
behavior. If you show up late, your team will be less punctual. If you lose your
temper easily, others will be amiss in keeping their emotions in check. Strive to
be your own ideal of the perfect worker, especially in front of the team.

6. Never go with 'one-size-fits-all.'

Your team is comprised of individuals with unique preferences, strengths,


weaknesses and ideas. Never use the exact same approach to motivate,
encourage or mold all of them. Focus on individuals, and customize your
approach to fit each one.

7. Remain as transparent as possible.

Transparency shows your integrity as a leader, and builds trust with the
individual members of your team. If you lie about something, or withhold
information, you could jeopardize your relationships and the respect you
command as a leader.

8. Encourage all opinions and ideas.

The more people you have actively participating in discussions and attempting
to make improvements to the organization, the better. Never chastise a team
member for voicing an opinion respectfully -- even if it goes against your
original vision or isn’t well thought out. Cutting someone down for voicing an
opinion builds resentment, and discourages people from sharing their own new
thoughts.

9. Help people enjoy work.

You don’t need a pool table or dress code abolition to make work fun. You
can make the workday more enjoyable with such new elements as surprise lunch
outings, a dedicated break room or even just casual conversations with your
workers. Help your people enjoy coming to work, and they’ll do their best work
for you.
10. Listen and ask questions.

If someone doesn’t agree with your management style or doesn’t like the
direction of the company, don’t silence that person. Listen. And ask questions of
your entire team: What do you think of this? How do you feel about that? This
open dialogue makes it easier to proactively identify problems and work
together to create a mutually beneficial environment. It will also make your
employees feel appreciated and acknowledged.
Introduction 14 principles of Management

In the last century, organizations already had to deal with management in practice. In the early 1900s,
large organizations, such as production factories, had to be managed too. At the time there were only few
(external) management tools, models and methods available.

Thanks to scientists like Henri Fayol (1841-1925) the first foundations were laid for modern scientific
management. These first concepts, also called principles of management are the underlying factors for
successful management. Henri Fayol explored this comprehensively and, as a result, he synthesized the
14 principles of management. Henri Fayol ‘s principles of management and research were published in
the book ‘General and Industrial Management’ (1916).

14 Principles of Management of Henri Fayol

14 principles of Management are statements that are based on a fundamental truth. These principles of
management serve as a guideline for decision-making and management actions. They are drawn up by
means of observations and analyses of events that managers encounter in practice. Henri Fayol was able
to synthesize 14 principles of management after years of study, namely:

1. Division of Work

In practice, employees are specialized in different areas and they have different skills. Different levels of
expertise can be distinguished within the knowledge areas (from generalist to specialist). Personal and
professional developments support this. According to Henri Fayol specialization promotes efficiency of
the workforce and increases productivity. In addition, the specialization of the workforce increases their
accuracy and speed. This management principle of the 14 principles of management is applicable to both
technical and managerial activities.

2. Authority and Responsibility

In order to get things done in an organization, management has the authority to give orders to the
employees. Of course with this authority comes responsibility. According to Henri Fayol, the
accompanying power or authority gives the management the right to give orders to the subordinates. The
responsibility can be traced back from performance and it is therefore necessary to make agreements
about this. In other words, authority and responsibility go together and they are two sides of the same
coin.

3. Discipline

This third principle of the 14 principles of management is about obedience. It is often a part of the core
values of a mission and vision in the form of good conduct and respectful interactions. This management
principle is essential and is seen as the oil to make the engine of an organization run smoothly.
4. Unity of Command

The management principle ‘Unity of command’ means that an individual employee should receive orders
from one manager and that the employee is answerable to that manager. If tasks and related
responsibilities are given to the employee by more than one manager, this may lead to confusion which
may lead to possible conflicts for employees. By using this principle, the responsibility for mistakes can be
established more easily.

5. Unity of Direction

This management principle of the 14 principles of management is all about focus and unity. All employees
deliver the same activities that can be linked to the same objectives. All activities must be carried out by
one group that forms a team. These activities must be described in a plan of action. The manager is
ultimately responsible for this plan and he monitors the progress of the defined and planned activities.
Focus areas are the efforts made by the employees and coordination.

6. Subordination of Individual Interest

There are always all kinds of interests in an organization. In order to have an organization function well,
Henri Fayol indicated that personal interests are subordinate to the interests of the organization (ethics).
The primary focus is on the organizational objectives and not on those of the individual. This applies to all
levels of the entire organization, including the managers.

7. Remuneration

Motivation and productivity are close to one another as far as the smooth running of an organization is
concerned. This management principle of the 14 principles of management argues that the remuneration
should be sufficient to keep employees motivated and productive. There are two types of remuneration
namely non-monetary (a compliment, more responsibilities, credits) and monetary (compensation, bonus
or other financial compensation). Ultimately, it is about rewarding the efforts that have been made.

8. The Degree of Centralization

Management and authority for decision-making process must be properly balanced in an organization.
This depends on the volume and size of an organization including its hierarchy.

Centralization implies the concentration of decision making authority at the top management (executive
board). Sharing of authorities for the decision-making process with lower levels (middle and lower
management), is referred to as decentralization by Henri Fayol. Henri Fayol indicated that an organization
should strive for a good balance in this.

9. Scalar Chain

Hierarchy presents itself in any given organization. This varies from senior management (executive board)
to the lowest levels in the organization. Henri Fayol ’s “hierarchy” management principle states that there
should be a clear line in the area of authority (from top to bottom and all managers at all levels). This can
be seen as a type of management structure. Each employee can contact a manager or a superior in an
emergency situation without challenging the hierarchy. Especially, when it concerns reports about
calamities to the immediate managers/superiors.

10. Order

According to this principle of the 14 principles of management, employees in an organization must have
the right resources at their disposal so that they can function properly in an organization. In addition to
social order (responsibility of the managers) the work environment must be safe, clean and tidy.

11. Equity

The management principle of equity often occurs in the core values of an organization. According to Henri
Fayol, employees must be treated kindly and equally. Employees must be in the right place in the
organization to do things right. Managers should supervise and monitor this process and they should treat
employees fairly and impartially.

12. Stability of Tenure of Personnel

This management principle of the 14 principles of management represents deployment and managing of
personnel and this should be in balance with the service that is provided from the organization.
Management strives to minimize employee turnover and to have the right staff in the right place. Focus
areas such as frequent change of position and sufficient development must be managed well.

13. Initiative

Henri Fayol argued that with this management principle employees should be allowed to express new
ideas. This encourages interest and involvement and creates added value for the company. Employee
initiatives are a source of strength for the organization according to Henri Fayol. This encourages the
employees to be involved and interested.
14. Esprit de Corps-a feeling of pride, fellowship, and common loyalty shared by the members of a
particular group
The management principle ‘esprit de corps’ of the 14 principles of management stands for striving for the
involvement and unity of the employees. Managers are responsible for the development of morale in the
workplace; individually and in the area of communication. Esprit de corps contributes to the development
of the culture and creates an atmosphere of mutual trust and understanding.

In conclusion on the 14 Principles of management

The 14 principles of management can be used to manage organizations and are useful tools for
forecasting, planning, process management, organization management, decision-making, coordination
and control.

Although they are obvious, many of these matters are still used based on common sense in current
management practices in organizations. It remains a practical list with focus areas that are based on Henri
Fayol ’s research which still applies today due to a number of logical principles.

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